No, this is not about my broker SL hunting, I seriously doubt they care where I place my stops!
It seems to me that most people put SL, or on the flipside limit orders around the same place. Lets face it, we all generally look at S&R, however we may just end up with diffrent views of the future direction.
So am I correct in assuming that (provided enough orders) that all those SL’s and all those limit orders will drive price further? Lets assume there is a line of support, and below that line is several peoples SL, and several others sell orders. While this happens over the course of what… 20-60 pips atleast… would this drive price further that way? or is there just not likley enough people to make an impact?
Its hard for me to consider which is more powerfull, all of those tiny guys who generally trade in a stupid/panic like mannor (some of them probibly took some of the money I left on the table and gave it to other ones ) or the ones who trade long term. Who at various times get in and out of trades?
I’m not talking about when all those ‘big dogs’ get out in a relativly cordinated manner, as if it was coordinated.
Because it seems to me if this is the case, then maybe we should look at, or take special note of when this is likley to occur.
As a newbie in the forex market, I am not well knowledge or exp enough to comment on this. I also heard ppl saying that all brokers do stop loss hunting. But after experiencing with a few brokers I had met brokers that do stop loss hunting and some brokers that do not do stop loss hunting(I assume). This broker which stop loss hunting moved prices way up to hit clients stop loss and then moved prices back to the way it should be. When I compared prices with other brokers it is very obvious that they stop loss hunting as the prices are totally different. But they are market maker they have make their own prices My current broker at least do not perform stop loss hunting(I assume) like the broker I mentioned above.
I’ve noticed that most of the time sombody complains about SL hunting it isnt actually their broker, this is why I brought this up. OTOH I’ve been in situations where I wonderd how/why my SL got hit, and most of the time I found a reason (typically I didnt look up the days news times) or I traded low volume days, etc, etc…
However, I’ve never compared it to another brokers data. I did alot of research before I chose a broker, and I’m quite happy with Oanda.
In my experience, if you are swinging for a long one ya normally pick a good solid whole number - something ending a zero perhaps? Price seems to always react around those zeros…toss in the assumption that the institutional guys are emplyoing the use of fibs and keep a keen eye on what happens at those levels - especially when they end in…you guessed it - a big fat zilcho. Now, if you are banging away at the m1 and m5 - ya don’t really pay that much attention to those zeros - maybe we should eh?
) or the ones who trade long term. Who at various times get in and out of trades?
